Kroll Bond Rating Agency (KBRA) assigns a BBB- rating to the 6.75%
Senior Secured Notes Due 2035 (the “Notes”) issued in 2013 by Autopistas
Metropolitanas de Puerto Rico, LLC (“Metropistas”) for an original
principal amount of $435 million. As of September 2018, Metropistas had
$416.73 million outstanding on the Notes. The Outlook is Stable.

In addition to the Notes, Metropistas has also borrowed a term loan due
December 2022 with $300.3 million outstanding (together, the “Credit
Facilities”). The Credit Facilities are pari passu and
cross-collateralized by the same collateral—namely, the memberships
interests in, and all assets of, Metropistas (in particular, the rights
of Metropistas under the Toll Road Concession Agreement dated as of June
27, 2011 (the “Concession Agreement”) with the Puerto Rico Highway
Transportation Authority (PRHTA)). Metropistas is owned by Abertis
Infraestructuras, S.A. (Abertis) and GS Infrastructure Partners (GSIP).

The Metropistas concession consists of two sections of highway – PR-22
and PR-5 (the “Project”). The roads have been in operation and tolled
since 1972 when the Buchanan toll plaza was opened. Since then, an
additional six toll plazas have been added giving a total of six toll
plazas on PR-22 and one toll plaza on PR-5. Users pay a fixed toll at
each toll plaza as they drive through. PR-22 runs along the north coast
of the island connecting the west to San Juan. PR-5 is a short road on
the south-west side of San Juan.

The BBB- rating on the Notes reflects our view of the Project’s
strengths, as follows:

Strong Project Rationale: The Project provides significant time
savings to users due to the poor quality of alternative roads. Speed
on alternative roads is about half of that on the Project. The price
per mile of the Project is under 20 cents for both roads which
compares positively with other roads in Puerto Rico and elsewhere in
the U.S.

Concession Agreement Features: The Concession Agreement has a
term of 50 years with 43 years remaining, and includes some of the
following credit positive features: no termination for convenience
from PRHTA is permitted; compensation payment for competing facilities
that reduce traffic on the Project over the concession’s life;
exemption of operational standards under force majeure events;
recordable real interest in the form of an administrative concession
over the roads; and toll increase at US CPI +1.5% annually without
approval needed.

Operating and Traffic History: The Project has a long operating
history since 2011 when the roads were first privatized, and traffic
history since the 1970s when the roads were built. Traffic history has
shown the roads’ significant resiliency to economic recessions,
weather events, and toll increases.

Financial Structure: The Project has strong DSCRs throughout
the term of the debt, even under scenarios assuming no traffic growth,
very low inflation, and higher operating expenses. Under KBRA’s base
case, average DSCRs are around 2.22x and the minimum DSCR is expected
to be 1.51x.

The rating also reflects the Project’s following weaknesses:

Traffic Risk: The Project is fully exposed to traffic or volume
risk which can be volatile depending on the economic and demographic
conditions of the capture area.

Weak Local Economy: The macroeconomic outlook of Puerto Rico is
challenging due to the impact of Hurricane Maria on local businesses,
housing, and infrastructure and the government’s restructuring
negotiations, which have impeded additional investment in the island.
However, progress has been made on both fronts, with the approval of
the fiscal plan in April 2018 and substantial federal aid to be spent
in the next few years in Puerto Rico.

Population Decrease in Capture Area: Population in Puerto Rico
has decreased from its peak in the mid-2000s of close to 3.8 million
to an estimated 3.4-3.5 million in 2017. There were concerns that
Hurricane Maria would cause a deeper exodus to the mainland. However,
many of the people that left in the aftermath of Hurricane Maria –
estimated in the hundreds of thousands - have since returned to the
island.

The Stable Outlook reflects our view that traffic will remain at levels
similar to what has been observed over the past two years with upside
potential due to the recovery efforts on the island. KBRA expects that
Metropistas will continue to successfully operate and maintain the
Project.

The rating is based on KBRA’s Global Project Finance Rating Methodology,
published November 28, 2017.

KBRA is a full service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. In addition, KBRA is
designated as a designated rating organization by the Ontario Securities
Commission for issuers of asset-backed securities to file a short form
prospectus or shelf prospectus, is recognized by the National
Association of Insurance Commissioners as a Credit Rating Provider, and
is a certified Credit Rating Agency (CRA) by the European Securities and
Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is
registered with ESMA as a CRA.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.